Correlation Between Shagrir Group and Shufersal
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Shufersal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shagrir Group and Shufersal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shagrir Group Vehicle and Shufersal, you can compare the effects of market volatilities on Shagrir Group and Shufersal and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shagrir Group with a short position of Shufersal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Shufersal.
Diversification Opportunities for Shagrir Group and Shufersal
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shagrir and Shufersal is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Shufersal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shufersal and Shagrir Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shagrir Group Vehicle are associated (or correlated) with Shufersal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shufersal has no effect on the direction of Shagrir Group i.e., Shagrir Group and Shufersal go up and down completely randomly.
Pair Corralation between Shagrir Group and Shufersal
Assuming the 90 days trading horizon Shagrir Group is expected to generate 1.0 times less return on investment than Shufersal. In addition to that, Shagrir Group is 1.93 times more volatile than Shufersal. It trades about 0.19 of its total potential returns per unit of risk. Shufersal is currently generating about 0.37 per unit of volatility. If you would invest 331,700 in Shufersal on September 1, 2024 and sell it today you would earn a total of 32,500 from holding Shufersal or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shagrir Group Vehicle vs. Shufersal
Performance |
| Timeline |
| Shagrir Group Vehicle |
| Shufersal |
Shagrir Group and Shufersal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and Shufersal
The main advantage of trading using opposite Shagrir Group and Shufersal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Shufersal can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shufersal will offset losses from the drop in Shufersal's long position.| Shagrir Group vs. Arad | Shagrir Group vs. Alony Hetz Properties | Shagrir Group vs. Airport City | Shagrir Group vs. Harel Insurance Investments |
| Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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